Given the more immediate fiscal and economic challenges the US faces, I’m still not persuaded that fixing Social Security is among the top 10. (I am pretty sure that controlling health care costs is at least 3 of the top 10.)
But I can’t and don’t dispute the simple demographic math: if something isn’t done to reform Social Security, then 20-30 years from now it won’t be able to meet its obligations. I also don’t dispute that the sooner Social Security is reformed and strengthened, the easier it will be for everyone concerned—which, given the nature of Social Security, is just about everyone in the US.
So when I read this op-ed column by a self-described “FDR Democrat … (and) a Reagan Republican”, it sounds good to me. Roosevelt and Reynolds propose the following deal:
- On the revenue side, gradually phase in a rise in the current $110,100 ceiling on wages subject to Social Security contributions until the ceiling reaches roughly 90% of all wages—and then index the ceiling to future wage gains.
- In addition, require all future state and local government employees to join Social Security (this would improve Social Security’s finances and ease the burden of local pension costs).
- On the benefits side, use a revised Consumer Price Index to calculate future cost-of-living adjustments so that benefits increase at a slower rate.
- Increase the 2030 full-benefits retirement age from 67 to 68 and then index that age to future longevity changes.
- Tied to that increase in retirement age should be improved disability options for those with physically demanding jobs.
- Finally, included in this Social Security “fix”, should be a payroll deduction Automatic IRA, so as to strengthen private retirement savings.
I don’t necessarily like everything about this compromise but then, it’s a compromise. I’m not supposed to like everything in it. And I could live with it—especially if it means strengthening Social Security.
But here’s the problem. As long as Reagan Republicans* (who backed the last Social Security reform in 1983) keep voting for and with “Ryan Republicans“, there won’t be any Republican votes for a compromise to save Social Security—or any other part of the federal government (except for the Pentagon).
This is why we can’t have nice things.
*If Reagan Republicans want to be helpful in the coming months, they might consider joining Republicans For Obama in the hopes of doing (electorally speaking) to Mitt Romney what “Democrats for Nixon” helped do to George McGovern in 1972.